Replies

the government isn’t going to be sending you a rebate...

then you do not understand taxes. I have gotten many a client a refund based on losses...............

But govt does want to reduce their risk that is why they limit capital loss to only a 3,000 loss per year. But you don’t lose it, just carry it forward against future gains and years.

The government isn’t subsidizing the process,

I would add, that subsidy doesn’t always mean a check in the mail. Anytime government or well intentioned organization changes the risk situation such as guaranteed home loans, that is a subsidy.

I am not an anarchist . Government has a purpose but it has overgrown itself. I don’t have a moral position on this, which you seem to have taken. I am just reporting the obvious. The government shares in my gains as well as my losses via the tax structure which is only fair. But they do stack the deck in restricting my losses.

My major point regarding bit coin is no one wants to talk about losses and there will be some. The politicians only see gains to be taxed, They don’t want to talk about the losses. So in their minds, they only see the REVENUE, not the NET.

“A subsidy is a form of financial or in kind support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy.[1] Although commonly extended from Government, the term subsidy can relate to any type of support - for example from NGOs or implicit subsidies. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, depreciation write-offs, rent rebates).[2] Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to the producer or the consumer. Producer/Production subsidies ensure producers are better off by either supplying market price support, direct support, or payments to factors of production.[1] Consumer/Consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water.[3]

Whether subsidies are positive or negative is typically a normative judgment. As a form of economic intervention, subsidies are inherently contrary to the market’s demands. Thus, they are commonly used by governments to promote general welfare (eg. housing, tuition, sustenance). However, they can also be used as tools of political and corporate cronyism.”

https://en.wikipedia.org/wiki/Subsidy